New market prices on renewable energy means 2030 targets can be set even higher – POLITICO.eu

A healthy development in offshore wind has enabled steep cost reductions in wind power, creating the opportunity to exceed the current 2030 European RES target.

The EU agreement stating that 27 percent of the energy supply should come from renewable energy sources was made on the assumption of a cost level that would reach €123/MWh in 2020. However, current costs are much lower, as recent development in offshore wind has made it possible to deliver green power at almost half the price of what was originally estimated. This creates the opportunity to enable a shred vision of a Europe running on green power can be met.

“The answer my friend”

Via Ørsted

As shown in the graph, the shift in offshore wind has created a price cut of 63 percent compared to 2011. This is caused by visionary policymaking in Northern European countries enabling the expansion of offshore projects — making green power far more competitive.

Henrik Poulsen, CEO of DONG Energy, a company that has faced what some would call a total self-disruption, sees this development as the chance of a paradigm shift: “This is a real turning point, as sustainable energy has become the economic choice. It gives the world a unique opportunity to take real action against climate change and create a world that runs entirely on green energy.”

DONG — originally short for Danish Oil and Natural Gas — recently took the final step in a huge transformation by selling off oil and gas production to become fully dedicated to green energy. The change will enable DONG to reduce its carbon emissions by 96 percent before 2024 ­— an important change, considering the recent climate reports.

On the same date as COP23 is initiated, DONG will change its name to Ørsted , a move that demonstrates not only a change but also a strong belief in a green future. Ørsted is named after Danish scientist Hans Christian Ørsted, who in 1820 discovered electromagnetism, which today remains the foundation for how modern societies are powered.

The company has created a short film to further Ørsted’s call for a global shift to green energy. Take a look at the company’s vision by following this link.

Enormous potential

Regarding the journey towards a full green European profile, there are signs that future wind power operations will be running autonomously.

An offshore wind project in German without subsidies from the government have been awarded this year, to be ready in 2024. This makes choosing renewable energy sources a sound business choice, benefitting both the economy and the climate.

However, there’s still a long way to go regarding a global shift towards green energy. To put it into context, about 80 percent of global energy supply remains fossil based.

Professor Sebastian Mernild, a Ph.D. specialist in climate change from the University of Copenhagen, is pleased to see companies aiming for renewable energy solutions, stating: “When major companies liberate from providing black energy sources, such as oil and coal, we can only hope it sends a clear political signal and creates opportunity to raise the ambitions of an all green future. We need it, yesterday.”